An initial amount of \$3100 is invested in an account at an interest rate of 3.5% per year, compounded continuously. Assuming that no withdrawals are made, find the amount in the account after three years.

Solution

An initial amount of $3100 is invested in an account at an interest rate of 3.5% per year, compounded continuously. Assuming that no withdrawals are made, find the amount in the account after three years.

Solution

Amount : 3443.2

Solution steps

Translate the problem into an equation:

A = 3100 e^{0.035 \cdot 3}

3100 e^{0.035 \cdot 3} = 3443.20289 \dots

Round to the nearest hundredth:

3443.2

Amount : 3443.2

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